Prepare a multiple-step income statement, Accounting Basics

Assignment Help:

Prepare a Multiple-Step Income Statement based on the information presented in problem 4 above.                   

Answer :                                                               

                Lotu Wo Company                                          

                Multiple-Step Income Statement                                                            

                Particulars           Amount in mce_markernbsp;                     

                Net Sales             560,000                

                Less: Cost of goods sold                366,000                

                Gross Profit        194,000

                Operating expenses:                                     

                General and administrative expenses    12,000                  

                Selling expenses              18,000                  

                Operating income / Comprehensive income       164,000

                Other income / (expense)                                          

                Interest expense             2,000                    

                Interest revenue             600                        

                Net profit before tax      162,600                

                Less: Income tax expense            50,000                  

                Net profit after tax          112,600 

 


Related Discussions:- Prepare a multiple-step income statement

Can a buyer still avail the 2% discount if he/she partially, can a buyer st...

can a buyer still avail the 2% discount if he/she partially paid the accounts receivable at the 5th day and the full payment is on the 10th day of the given discount period in th

Example of periodic inventory procedure, Q. Example of Periodic inventory p...

Q. Example of Periodic inventory procedure? Periodic inventory procedure Merchandising companies selling small unit value merchandise such like nuts and bolts Christmas cards n

Banking sector, effects of technology in banking sector

effects of technology in banking sector

Describe about assets, Q. Describe about Assets? Assets are things of w...

Q. Describe about Assets? Assets are things of worth owned by the business. They are as well called the resources of the business. Illustration includes machines, cash and buil

Preparing journal entries for merchandising activities, Can you explain to ...

Can you explain to me how you did it? As well as putting it in a excel format but make it not take a lot of papers to print it out. A girl in my class said you can use a paint prog

Recording, does immaterial items have to be recorded

does immaterial items have to be recorded

State unemployment tax, State unemployment tax This is referred to as S...

State unemployment tax This is referred to as SUTA (State Unemployment Tax Act). The taxes are paid to the state in which employer conducts business. This rate varies from stat

If market interest rates are higher than the rate offered on, 1. If market ...

1. If market interest rates are higher than the rate offered on the bonds being sold, they will be sold at: A. a premium. B. a discount. C. face value. D. a loss.

Income statement , Astra Company sells financial calculators and offers ins...

Astra Company sells financial calculators and offers instruction on their use. During its first year it expects to sell 3000 calculators at $30 each and offer 5000 hours of instruc

Prepaid expenses and deferred charges, Q. Prepaid expenses and deferred cha...

Q. Prepaid expenses and deferred charges? Prepaid expenses, deferred charges -- assets already paid for, which are being used up or willexpire. Insurance paid for in advance is

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd